Overview
- Following a 25 bp rate cut by Chair Jerome Powell, crypto majors fell, with Bitcoin down about 2% to $90,250 and Ether down 4% to roughly $3,200.
- JPMorgan says the recent drawdown is a meaningful correction but not the end of the current bull cycle.
- The bank cites ETF basis-trade unwinds, liquidations of leveraged longs, year-end illiquidity, and pre-Fed macro uncertainty as the key drivers of volatility.
- ETF flows have turned positive since November 20, with net inflows of about $535 million into Bitcoin funds and $574 million into Ether funds.
- U.S. policy signals remain in flux as Senate Democrats accepted significant portions of a market-structure bill and sent a short counterproposal after Senator Cory Booker warned about agency balance.